This invention relates to a device and method for providing and activating an account or asset, and more particularly, to a device and method for activating an account or asset by secure means, the account or asset only being of value after activation and distribution to the end user.
Various methods and systems exist for the sale and use of prepaid telephone calls. One example is U.S. Pat. No. 4,706,275, which allows for prepayment of telephone calls, wherein credit information and a special code for a specific account are stored in memory in special exchanges and then the amount of prepaid minutes in a specific account are debited as a call is made, using the special code. Such systems are well known in the telecommunications industry, and the special codes are typically referred to as personal identification numbers or PINS. PINS may be distributed to an end user in various forms such as a label on a phone card, or printing on a phone card. Typically, a phone card company sells a plurality of phone cards with distinct PINS on each of the phone cards to a retailer, a machine operator, or promotional advertiser. These phone cards are typically resold for long distance services at retail value, or may be given away as promotional items. Each PIN appearing on an individual phone card corresponds to a specific account that is credited with a predetermined number of telephone call units, such as minutes. In some systems, the PIN is actually the account number, which corresponds to a control code that is issued with and identifies a particular phone card. Thus, each PIN may be linked to a predetermined number of minutes of long distance telephone time and to a control code. There are significant disadvantages with providing live or active telephone cards. One major drawback is the fact that the cards have value prior to distribution, and can be stolen. Another drawback is that retailers must hold such assets as inventory, creating problems for inventory control as well as concerns for security over storing unsold cards.
One alternative to having the retailer prepay for the cards is to implement point of sale activation, known in the industry as xe2x80x9cPOSA.xe2x80x9d Point of sale activation involves distributing inactive phone cards to a retailer, then having the retailer activate each individual card as it is paid for by the customer. One example of this POSA system is disclosed in U.S. Pat. No. 5,903,633. As disclosed therein, a phone card is provided which has a magnetic strip for encoding prepaid phone card information adapted for reading by a point of sale terminal. At the time the phone card is to be sold or otherwise transferred to an owner, the card may be read through the terminal which communicates with a central computer. The central computer compares information encoded on the card with information stored in a central database and with information from the point of sale terminal to verify that the card is being rightfully sold. The central computer may then authorize or deny activation of the card. Upon activation, the central computer or an invoicing computer communicating with the central computer may then prepare an invoice or automatically debit the retailer""s bank account.
Another example of activating an account involving prepaid phone cards and the like include U.S. Pat. No. 5,918,909. This reference discloses a method of activating a metered account that is associated with a PIN, where the PIN is fixed to a card and the metered account is activated at the time of sale of the card. The card utilizes a magnetic data encoded strip, and a PIN printed thereon. The magnetic data encoded strip is encoded with a control number that is associated with the metered account. When the card is purchased, the control number is read from the data encoded strip, and the metered account is activated.
An example of a long distance telephone service system involving prepaid accounts includes U.S. Pat. No. 5,953,398. This reference discloses a system which provides for accounting and flexible, customizable control of long distance telephone usage by customers, especially prepaid long distance service customers. The system maintains a set of operating parameters corresponding to each access number, and a database of user accounts or card numbers along with a set of card processing parameters associated with each card number. Both the operating parameters and the processing parameters are applied in completing a long distance call. New accounts and recharging of existing prepaid accounts is accomplished automatically from remote locations.
Another example of a prepaid card system involving activation of an asset includes U.S. Pat. No. 5,721,768. This reference discloses a prepaid card system enabling customers to make purchases using an authorized card. The system includes four main functional components: a plurality of cards, a host computer, a plurality of on-site activation terminals, and a main processor. Each of the cards has a security number associated therewith. Each card is formed of a suitable material and may include the security number in clear text under a suitable black out. The main management and processing of the system is effected by the host computer. The host includes a database for storing security numbers corresponding to each of the authorized cards. The data terminals are remote from the host computer and communicate therewith for transmitting data between the terminals and the host computer. The main processor is controlled by the host computer for enabling customer purchases using authorized cards.
U.S. Pat. No. 5,696,908 is an example of a method and apparatus used for handling a telephone debit card. This reference discloses a method whereby telephone debit cards are automatically vended through a microprocessor controlled vending machine which permits card payment in cash and credit. The customer may select a desired telephone card value and a desired telecommunications carrier. Prepaid and printed cards are dispensed. Optionally, printed receipts are dispensed including an access code and prepaid value. The vending machine generates real time communications with an electronics funds clearing house for customer validity and funds approval. After electronic transfer of funds to the machine, the telephone debit card is dispensed and funds are electronically transferred to the selected telecommunications carrier via real time communications with the carrier chosen for electronic transfer of the card value, thus permitting immediate use of the telephone card by the customer.
Yet another example of a method or device involving activation of an asset includes U.S. Pat. No. 5,868,236. This reference discloses a phone card vending machine which has a secure locking cabinet, a card dispenser, a bill accepter or similar cash accepter, a printer for printing slip receipts containing an activated PIN, and a controller board within the cabinet which controls the printing of activated PINs. The card dispenser contains a supply of inactivate or zero value telephone cards. The controller board has a PIN memory that stores PIN numbers for each of several amounts of long distance calling time. The customer purchases a card by inserting currency, and making a selection on a keypad on the cabinet. At the time the card is dispensed, the printer prints and dispenses a receipt showing the value of the purchase price, including any taxes, the amount of long distance service time purchased, and the PIN number. The vending machine can replenish its stock of activated PIN numbers by modem from a remote location.
While each of the foregoing inventions may be adequate for their intended purpose, there are certain disadvantages associated with each, and none of which alone or in combination provide the advantages hereinafter described with reference to the claimed invention herein.
In accordance with this invention, a method and apparatus are provided for activation of a desired asset or account. According to the invention, secure means are provided to activate the asset or account and thus, only be of value after the asset is activated and distributed to the consumer or end user. The security features of this invention involve the distribution of activation codes which are matched with each physical representation or manifestation of the asset, such as a prepaid phone card or the like. The physical representation of the asset may be a plastic or paper card, receipt, coupon, or some other carrier which may have the activation code printed thereon or attached thereto.
The physical representation of the asset, i.e., the card, is stored or merchandised in an inactivate state meaning that the asset may not be used until activated. Distribution, merchandising and transportation of the physical representation of the asset in an inactivate state greatly reduces the opportunity for theft or fraud.
Approval for activation of the asset is accomplished by communicating with an activation host computer system which stores data through an activation database on each asset. Communication with the activation host computer is preferably completed by the end user, or may be completed by the entity, such as a retailer, that distributed the card to the end user. In order to fulfill a request to activate the asset, at least two pieces of information must be communicated to the activation host computer system. In the preferred embodiment, these pieces of information include an asset ID, and the activation code. The asset ID may also be referred to as a PIN number or simply a PIN. The PIN number is typically pre-printed on the card, and corresponds to an account established on the asset provider""s computer system. The activation code may be one element in an activation identification sequence, or activation ID. The activation ID may further include a time/date stamp and a check sum digit allowing incorporation of additional security features. Activation codes are stored in a secure manner within the activation host computer system, and within an activation device once it has received a set of activation codes from the activation host computer. These activation codes are stored in a secure manner separate from the cards or any other physical representation of the assets.
As an example, prepaid phone cards that are sold in retail establishments provide end users access to a preset number of long distance network calling minutes. Under the method and apparatus of this invention, prepaid phone cards can be merchandised in an inactive state and thus be of little actual value prior to activation. At the time of purchase, the retail clerk in the retail store would affix an activation ID to the prepaid phone card by inserting the card in an activation device which would dispense a unique activation code, or an activation ID which would include an activation code. The end user would then communicate with the activation host computer system, for example by a voice response unit (VRU) prior to placing the first call. The VRU would prompt the end user to identify the prepaid phone card that was purchased by recitation of the PEN/asset ID and activation ID. Upon receiving this information, the activation host computer processes a variety security checks including a check to ensure that the PIN and activation ID were issued to the same retailer, and a check to ensure that the retailer has not exceeded a typical number of activation ID dispenses, among others. If the submitted information passes the security checks, then the activation host computer communicates through the VRU that the asset has been approved for activation, and is valid. The end user now has access to a value represented by the prepaid phone card. Thus, the method and apparatus of the invention enable distribution and merchandising of assets in an inactive state so as to provide a secure mechanism to transfer, distribute or sell the assets without the fear of theft or fraud. Additionally, the method and apparatus provide means to track when and where assets were sold or distributed.